[Telegraph] Etihad is to open a European headquarters in Man­chester, which could lead to the creation of up 300 new jobs in the city.

Etihad has chosen Manchester because of the opportunity to tap into a well-educated pool of graduates with extensive language skills

According to sources at the Abu Dhabi-based carrier, the airline will first set up a major call centre, which will provide around 160 posts.

As well as serving Europe, the centre will provide out-of-hours service for other parts of the world.

Eventually it is anticipated that back-office jobs will also be moved to Manchester, along with engineering jobs. It is understood Etihad has chosen Manchester because of the opportunity to tap into a well-educated pool of graduates with extensive language skills.

Currently, the airline operates two daily services in and out of Manchester, with many of the passengers flying further afield than Abu Dhabi to destinations such as Australia and Far East. Its operation enables passengers from the north to make long-haul flights without having to change planes at Heathrow.

The company currently operates call centres in Abu Dhabi, Mumbai and Dublin, as well as Manchester.

Etihad has already made its presence felt by sponsoring Premiership-chasing Manchester City, in a deal which along with the financial backing of Sheikh Mansour has seen the club able to afford some of the highest profile footballers in the world.

The club’s stadium is known as the Etihad and the airline is also creating a £100m state-of-the-art football campus on the 80-acre site.